Many businesses in the online realm are working to offer their brands in a direct-to-consumer (DTC) fashion to bypass go-betweens and provide cost savings. The problem with this is that the ad space is getting more expensive, it is challenging to differentiate your product or service from the competition, and customer retention is declining.
Marketing teams need help optimizing eCommerce store sales and growing and scaling their businesses. Your brand invests time, energy, and money in learning about customer behavior.
Performance marketing can leverage your marketing efforts and benefit your eCommerce store. It utilizes methods to understand more thoroughly the where, why, when, and how.
Here are six effective ways that using performance marketing is advantageous for your eCommerce store.
Performance Marketing 101
Digital marketing today relies on a lot of online advertising. Performance marketing (or performance media marketing) is a way where you’re only responsible for paying when you get results. You can create terms between your brand and the agency depending on your objectives and goals.
Potential goals or results may include the following for your brand:
- A specific number of new leads/prospects
- Agreed upon number of click-throughs to your website or landing page
- However many bookings or sales you wish to produce
- A certain number of shares or downloads
Your eCommerce store will receive a high level of brand exposure that doesn’t cost much if anything at all. It’s not restricted to a specific channel or platform, so that performance marketing can work through social media, searches, and affiliate marketing simultaneously.
Types of Performance Marketing
There are plenty of ways in which performance marketing is utilized within the ad space, including techniques such as the following:
- Social media ads
- Search engine optimization (SEO)
- Sponsored Advertisements
- Affiliate or influencer marketing
Why are these methods so essential for your eCommerce store? Digital advertising is one of the major techniques for businesses that has grown in popularity, and many brands don’t see success through paid media on platforms. All of the money invested does not guarantee a significant outcome.
Benefits of Performance Marketing for Your eCommerce Store
However, performance marketing allows eCommerce to budget wisely and only pay when you get the results. Here are some of the other benefits you’ll find with performance marketing
Attracting The Right Consumers
You can effectively set forth parameters to gain prospects and buyers without wasting your marketing budget. Companies utilize behavioral information to customize and personalize ad campaigns, banners, and other spaces that the customer sees through dynamic remarketing.
An excellent example is when a customer views an eCommerce site and puts a product in the cart but doesn’t make the purchase. Marketing ads can then use the same product within your brand’s advertising and keyword searches to encourage that customer to complete the buying process.
Your eCommerce store can reach a broader and more diverse audience than would be through traditional advertising with performance marketing. Affiliate marketing can help you tap into a specific demographic and pull in more traffic to generate sales.
Most of the performance ads are used on social media and search engines and aid in higher conversion rates and effectively attract similar customers looking for that exact product or service at the same time.
Key Performance Metrics (KPI) Optimization
KPIs play a serious role in your brand’s ability to reach goals. If your eCommerce store is working to boost sales, promote higher search rankings, or increase customer retention, performance marketing can set you up directly to target those metrics.
Since the agencies focus on producing results, you can be sure that these search engine marketing services are working hard to deliver those gains.
Pay for Results
Probably the most enormous pull of performance marketing is that you pay agencies only when your eCommerce store’s desire or result is met. You can easily optimize your funds by spending money for real outcomes.
The only challenge with your marketing team is determining the type of results necessary. Do you want to grow your email list? Increase website traffic? Boost downloads and shares? Whatever the approach, you’ll only pay when certain KPIs are met.
Faster and Insightful
Tailoring your marketing efforts to meet specific goals and metrics allows you to achieve better results in a shorter time frame.
Consider whether your eCommerce store truly knows its audience (don’t make the mistake of incorporating performance marketing without it!), and use that to pinpoint what metrics to focus on for your performance marketing.
The agencies are set to achieve those results, so they will make the most out of whatever investment you make for your advertising campaigns, leaving them to be more insightful and perform better.
Make Performance Marketing Work for You
The performance marketing approach is an excellent way to obtain the results your eCommerce store needs. You can quickly scale your outreach, engagement, sales, conversions, downloads, and other metrics without increasing your spending or breaking your budget. If your brand wants to drive optimum results, performance marketing is a beneficial tool for your bottom line.